Assessing Exports Market Dynamics: The Case of Greek Wine Exports

Competitiveness in international wine markets has intensified during the recent years. The dynamic and revitalized presence of non-European producers (e.g. Australia, Chile, South Africa, USA), who have seen their market shares rising rapidly and the subsequent reduction in the market shares of traditional European producers (e.g. France, Italy, Greece) alongside a slight decrease of wine consumption worldwide, have shaped new trends for wine markets internationally and contemporary challenges for the traditional European wine exporters. The aim of the present study is to investigate the determinants of the Greek wine exports and to assess its competitiveness in the European market. Primary data regarding wine trade has been collected for the period of 2004-2011, referring to four main European producer countries, namely Greece, France, Germany and Bulgaria. A gravity equation model has been estimated in order to examine the factors that determine wine exports and wine exports competitiveness among those countries. The results offer a clear picture of the wine trade dynamics in the EU market, indicating as key determinants for its competitiveness the size of each country's economy, the geographical distance from other EU countries, the presence of common borders or common language among trading nations as well as the size of per capita wine consumption to the European wine markets.